Answer:
Mike has a comparative advantage in the production of computers.
Explanation:
Mike's opportunity cost of producing trucks instead of computers = 10 / 10 = 1.
Mike's opportunity cost of producing computers instead of trucks is 10 / 10 = 1.
Debra's opportunity cost of producing trucks instead of computers = 3 / 9 = 0.333.
Debra's opportunity cost of producing computers instead of trucks = 9 / 3 = 3.
Mike's opportunity cost of producing computers instead of trucks is 1, while Debra's is 3. Therefore, Mike has a comparative advantage in the production of computers.
Answer:
A) A river from which a company draws water is called land.
Explanation:
There are mainly<u> 4 Factors of Production</u> and these are:
<em>1. Labor </em>
<em>2. Land </em>
<em>3. Capital</em>
<em>4. Entrepreneurship</em>
- <u>Labor doesn't refer to the owner of the company.</u> It refers to the <em>work that is being done in order to finish a particular project or work</em>. This makes choice D incorrect.
- An enterprise refers to the entire company or business. It doesn't limit itself to the supervisors involved. This makes choice C incorrect.
- <u>Capital in the form of money is not a factor of production.</u> Raising finance for a company means raising money. An example of capital as a factor of production is<em> purchasing an equipment for commercial/business purposes</em>. This makes choice B incorrect.
- When it comes to "land" as a factor of production, it refers to the natural resources, which means it includes not only the forests, mountains and the like but <em><u>also the oceans, rivers, lakes, etc. </u></em>as long as it is being used in the production process. This makes choice A correct.
Answer:
C) Capital investment analysis
Explanation:
Investment in fixed assets is capital investment, and fixed assets are capital assets that are purchased for long-term use (usually longer than 1 year), for example: land, buildings, or equipment.
Therefore, the financial analysis of investments in capital assets is called capital investment analysis.
Answer:
a) I used an excel spreadsheet since there is not enough room here.
b) Net income = $8,950
Cash flows form operating activities =
Net income $8,950
Adjustments to net income:
- Increase in account payable <u> $250</u>
Net cash from operating activities $9,850
Net income is lower because a company must record revenues and expenses when they happen, not when they are associated with cash flows. This is why a company that makes all credit sales might have a large profit, but a small amount of cash (the opposite of this situation).
